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And for a while, interest in growth funds, which contain stocks of companies considered on the rise, outpaced value funds, which focused on companies thought to be bargains.
In 2009 the funds were up between 22% and 24%, closely approximating the market even though growth stocks far outpaced value.
Over the five years through December, growth stocks outpaced value stocks; since January the S&P Barra Value Index has lead the Growth Index by a 2-to-1 margin.
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So far in 2007 growth is outpacing value by over 100 basis points.
The end result of these financings is typically that the burn rate will often outpace value accretion at the startup.
If the cost outpaced the value of the work, that would have been dilutive, as demonstrated by a down round.
Small growth funds have outperformed small value funds in the past two months, but DeVault says he's still uncertain that growth looks ready to outpace value.
Value also outpaced growth (which encompasses more than just tech) for both mid- and small-caps.
Following the stock market's bubble burst in 2000, value stocks outpaced growth stocks (the market-cap index holds both) over the subsequent five years.
Among diversified stock funds, growth offerings far outpaced their bargain-hunting value-fund peers.
In fact, the Russell Growth Index is outpacing the Russell Value Index by more than 400 basis points so far this quarter and now leads Russell Value by 240 basis points year-to-date.
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